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The servicescape is increasingly being recognized as a function of two distinct components: physical and social. While these two dimensions have often been studied independently, the purpose of this paper is to examine the effect of both dimensions simultaneously in a fast casual restaurant context.

A sample of 1,110 fast casual restaurant patrons in the USA was collected. The data were analyzed using nested structural equation modeling.

The results suggest that both the social and the physical servicescape can affect consumption behavior in the fast casual restaurant industry and crowding can act a moderator of these relationships.

Theoretically, these results are significant because they suggest the importance of capturing a holistic account of the servicescape when conducting research on the consumption environment.

This study is among the first to examine the effect of the social servicescape (and specifically the effect of crowding) in fast casual restaurants. The results suggest that restaurateurs need to be mindful that crowding affects the relationship between social servicescape and satisfaction.

This research is the first to look at both aspects of the servicescape as drivers of consumer behavior in the fast casual dining segment. Additionally, this research makes a second contribution by assessing the effect of crowding on the servicescape-driven relationships inherent in the proposed model.

This study identifies an effective communication strategy for promoting restaurants’ green efforts to customers by using different types of green advertisement messages. This study aims to investigate the relative persuasiveness of attribute-based versus benefit-based appeal messages in green restaurant advertisements and their matching effect with different types of green practices in the restaurant (environment-focused green practices vs food-focused green practices) and with different types of restaurants (fine dining vs fast casual dining) on customers’ attitude and visiting intention toward green restaurants. Furthermore, the study examines a moderating effect of restaurant types to assess whether the matching effects between types of messages and types of green practices work differently within the different types of restaurants.

A 2 (attribute-based vs benefit-based messages) × 2 (food-focused vs environment-focused green practices) × 2 (fast casual vs fine dining restaurants) between-subject experimental design was used to test the proposed hypotheses. An online scenario-based survey was developed and distributed to online panel members in the USA. Ultimately, 363 responses were used for data analyses. ANOVA and t-test were conducted to analyze the data.

The results indicate that benefit-based messages are generally more persuasive than attribute-based messages in green restaurant advertisements. For restaurants with food-focused green practices, an advertising message emphasizing the benefit of food-focused green practices (benefit-based message) would be more effective than an advertising message describing their tangible efforts to show the greenness of the restaurant (attribute-based message). For fine dining restaurants, a green advertisement with benefit-based information would be more persuasive than attribute-based information. This study further showed that the aforementioned interaction effect between types of green practices and types of messages was salient for fine dining restaurants.

This research is one of the few studies in restaurant management to examine the green communication effectiveness in terms of the types of green practices and the types of advertising message framing. By comparing the relative persuasiveness of green advertisements on consumers’ attitudes and behavior intentions, this study provides suggestions for restaurant professionals to make effective green communication strategies based on the type of green practices the restaurant primarily uses and the type of restaurant the manager is operating.

This case considers the buyout of Panera Bread from the perspective of a private equity fund. In early 2017, KLG Managing Director Tom Denning is considering a leveraged buyout of Panera Bread, a rapidly growing fast-casual restaurant company. A surprising Bloomberg News story signals that the deal process is broadening and KLG will have to act quickly if it hopes to buy Panera Bread. Students assume the role of Tom Denning as he prepares an investment recommendation for KLG's investment committee. In doing so, students are required to consider a very large and expensive investment. Students are challenged to create an investment recommendation by performing due diligence, determining additional questions to ask, and pricing a buyout bid that incorporates an optimal capital structure and meets KLG's return requirements. The Panera Bread case is designed to give students insight into the private equity investment process.

The purpose of this paper is to present a review of the foodservice and restaurant literature that has been published over the past 10 years in the top hospitality and tourism journals. This information will be used to identify the key trends and topics studied over the past decade, and help to identify the gaps that appear in the research to identify opportunities for advancing future research in the area of foodservice and restaurant management.

This paper takes the form of a critical review of the extant literature that has been done in the foodservice and restaurant industries. Literature from the past 10 years will be qualitatively assessed to determine trends and gaps in the research to help guide the direction for future research.

The findings show that the past 10 years have seen an increase in the number of and the quality of foodservice and restaurant management research articles. The topics have been diverse and the findings have explored the changing and evolving segments of the foodservice industry, restaurant operations, service quality in foodservice, restaurant finance, foodservice marketing, food safety and healthfulness and the increased role of technology in the industry.

Given the number of research papers done over the past 10 years in the area of foodservice, it is possible that some research has been missed and that some specific topics within the breadth and depth of the foodservice industry could have lacked sufficient coverage in this one paper. The implications from this paper are that it can be used to inform academics and practitioners where there is room for more research, it could provide ideas for more in-depth discussion of a specific topic and it is a detailed start into assessing the research done of late.

This paper helps foodservice researchers in determining where past research has gone and gives future direction for meaningful research to be done in the foodservice area moving forward to inform academicians and practitioners in the industry.

This case is used in the Marketing Analytics elective at Darden. A Sticks executive team is interested in opening a second quick-service restaurant in Richmond, Virginia. But before doing so, the team wanted to gain a better sense of who were Sticks' customers, which location would attract the best customers, and how to best connect with customers. An opportunity to gather survey data presented itself. Would the demographic and psychographic assumptions the team had gathered from talking to people in stores align with the survey answers? And what would the data suggest about where to locate new stores and about what marketing channels and messages to use to promote them?

This study aims to examine whether indirect customer-to-customer interactions (CCI) affect consumers’ behavioral intentions and how that effect is generated. It also explores the effect of dining experience on customer behavioral intentions and how that effect varies by party type.

The research consists of an experimental survey-based study of n = 491 real-world consumers from a marketing research panel. Structural equation models are analyzed to examine hypothesized relationships.

Indirect CCIs significantly affect all five dimensions of experiential value. Food and beverage (F&B) excellence, aesthetics and service excellence positively affect customer revisit intentions and word-of-mouth intentions via restaurant image. Furthermore, party type moderates the effect of aesthetics on behavioral intentions so that the effect is significant for the social diner group only. Customer return on investment and playfulness show non-significant impacts on behavioral intentions.

Managers should be aware that indirect CCIs influence all aspects of the restaurant experience. Since F&B excellence, aesthetics and service excellence affect restaurant image and behavioral intentions, management can operationalize these elements of service. The impact of aesthetics differs by consumers’ party type, enabling management to create unique servicescapes based on their target customer segment.

The study pioneers an investigation of how indirect CCI is associated with behavioral intentions through the mediating effects of experiential value and restaurant image. It contributes to the literature by examining how the impact of diners’ experiences differs by party type.

The April 20, 2010, Gulf Coast Oil Spill was a tragic crisis. This study examined the effect of the 2010 Gulf Coast Oil Spill on the restaurant industry in Louisiana. The study quantified key issues affecting state restaurants in the wake of this particular crisis. The study found that oysters were the seafood with the least availability following the crisis. Most of the restaurants, or 54.8%, did not take any menu items off of their menu; however, 24.2% eliminated one or two items and 21% removed three or more items from their menu due to the oil spill. Casual Restaurants at 38.3% and Family Dining Restaurants at 31.2% had the highest percentages of out-of-state purchases of seafood due to the oil spill. Casual Theme Restaurants laid off the most employees due to the oil spill with an average of eight employees. The highest reported costs from the spill were product costs and marketing/advertising.

Despite the growing trend for single-dish restaurants in the Philippines, understanding customer loyalty for this subsector is scarce in the current literature. To address such a gap, this paper aims to identify attributes and their sub-attributes that contribute to customer loyalty for single-dish restaurants.

Using the analytic hierarchy process, the priorities of these attributes in achieving customer loyalty were generated from a group of expert decision-makers. A representative case study in the Philippines with an emerging market trend for single-dish restaurants was conducted.

Findings show that “value” is the most crucial attribute in achieving customer loyalty, followed by “food” and “service” attributes, which are straightforward implications of single-dish restaurants. More strikingly, the “atmosphere” attribute ranks last in the priority list, which may mean that customers consider fancy environments with less priority when dining in these types of restaurants. In the priority sub-attributes, “dining experience” and “tastiness” came up on top of the list, with the “music” attribute ranking last. These findings are crucial inputs to inform the design of strategies that would enhance the customer base.

This study reports the first attempt to rigorously analyze single-dish restaurants, which gain little attention in the current literature, yet an emerging type of restaurant, especially in developing economies. With significant differences in many aspects of mainstream restaurants, customer loyalty attributes may be different. This paper determines the list of priority attributes and sub-attributes of customer loyalty for Philippine single-dish restaurants. Identifying these priority attributes contributes to the extant literature by offering valuable insights for relevant decision-makers in gaining competitive advantage within their market niches.

Middleby Corporation was a designer and manufacturer of commercial food processing and food service equipment for fast food as well as high-end restaurants. During the latter half of the 1990s, Middleby became increasingly unfocused as its number of product lines increased dramatically. Margins and sales slipped. At the same time, some of the company's high-profile product development initiatives ended in failure. Although Middleby's top management recognized some of these apparent warning signs, rather than take action, they seemed eager to blame the disappointing results solely on the company's overseas operations. This inaction caused Middleby's financial performance to deteriorate further, resulting in violations of its loan covenants. To finally correct the situation, Selim Bassoul was moved from his role as general manager of Middleby's Southbend plant up to chief operating officer for the entire corporation. Bassoul had taken the underperforming Southbend plant and turned it into a star performer, correcting and improving customer service, operations, and finances and establishing a clear strategic direction. Bassoul had to craft a turnaround plan for the entire company in the areas of strategy, operations, and finance. He cut the number of products substantially, fired some key customers after a customer profitability analysis, and focused product development on innovative products that saved Middleby's customers time and money. Following these changes and others, the company returned to profitability and Bassoul was named CEO. Bassoul then decided to present a major acquisition opportunity to the board of directors.

1. Successful turnarounds require three essential elements to be addressed: strategy, finance, and operations, all under the CEO's leadership. Students will learn how each element alone and in combination work to make a successful turnaround. 2. Students will learn turnaround leadership skills and see their parallel as entrepreneurial leadership skills. 3. Students will learn that decisions on products, customers, and employee motivation all affect a turnaround strategy.

In November 2003, John Fruehwirth, a principal at Allied Capital, was considering a $20 million mezzanine investment in growth capital for Elephant Bar, a California restaurant chain. Elephant Bar had had some initial success in California but now Allied's investment committee had to wrestle with the question of whether the restaurant concept was strong enough to travel and become a national brand or whether it was mainly a “California Concept.” And if the concept was strong enough to travel, would Allied Capital be able to meet its underwriting standards? Because Elephant Bar is a company with aggressive growth plans, it is significantly riskier than traditional mezzanine investments. The case can be used in courses on venture investing to illustrate another funding source available to young companies. Traditional mezzanine financing is often used to provide a portion of the funding for late-stage investments, such as leveraged buyouts. The case can also be used in courses on private equity to illustrate the perspective, risk mitigation strategies, and return expectations of mezzanine investors.

This case has a teaching note and a spreadsheet, which are available to registered faculty members.